Quincy investment firm, co-founder fined by state

Secretary of State William Galvin has ordered Conquest Capital Partners and co-founder Ryan Gadles to repay investors money from a failed real estate venture.

By Lane Lambert

The Patriot Ledger, Quincy, MA

By Lane Lambert

Posted Oct. 17, 2013 at 12:01 AM
Updated Oct 17, 2013 at 5:14 PM

By Lane Lambert

Posted Oct. 17, 2013 at 12:01 AM
Updated Oct 17, 2013 at 5:14 PM

BOSTON

» Social News

Secretary of State William Galvin has fined and censured a Quincy firm that sells privately-placed securities, along with its co-founder.

Conquest Capital Partners and co-founder Ryan Gadles have been ordered to repay investors from a failed Arizona real estate venture, and to allow other investors to void their contracts and withdraw their investments at no cost.

Gadles and Conquest Capital are also prohibited from making such investment offerings in the future.

Galvin also said Gadles, Conquest Capital and the Conquest Phoenix Fund weren’t registered in the state, nor were the real estate securities they offered.

Gadles told The Patriot Ledger on Thursday that investors have been fully repaid $90,000 they put into the Phoenix Fund, along with 6 percent interest. He said Conquest Capital paid the state's $15,000 fine on Thursday.

"Investors and the state have been made whole," he said.

Gadles said investors were repaid $60,000 of the $90,000 in 2012, as soon as he and Conquest Capital saw that they wouldn't be able to raise $2 million for a venture to buy, renovate and resell a number of homes in the Phoenix, Ariz. area.

Gadles said he and Conquest Capital were properly registered with the federal Securities and Exchange Commission, and that they'll now make sure they're also registered with the state. Gadles said the firm can still make other kinds of real estate investments here.

Galvin said that in the failed Conquest Capital deal, Gadles encouraged investors to move money from their existing IRAs and 401k’s into a self-directed IRA. Those forms of IRAs allow a wider variety of investments, including direct real estate deals such as Conquest Capital's.

Galvin said Gadles was going to use the initial $110,000 to buy a home in the Phoenix, Ariz. area. The home would be renovated and then “flipped” for a profit. Additional houses would then be bought, renovated and sold over the three-year period.

Galvin said that, while self-directed IRAs are legitimate investments, investors should “be on guard” against efforts to steer their money into them. He said those forms of IRAs can be used by “unprincipled promoters” to deceive investors about how safe such investments really are.

Galvin said Gadles never told investors that the deal wouldn’t work if he didn’t raise the minimum $110,000. Investors were promised a 13 to 17 percent return.

Conquest Capital’s web site says the company offers direct financing for real estate investors and developers. It has three offices – Presidents Place in Quincy Center, New York City and San Diego.